NZD/USD Technical Analysis: Kiwi Moves to 3-Week High

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

• NZD/USD Technical Strategy:Flat
• Support: 0.7448, 0.7344, 0.7280
• Resistance:0.7492, 0.7532, 0.7616

The New Zealand Dollar continues to rise against its US counterpart having launched a recovery after producing in a bullish Morning Star candlestick pattern. A daily close above channel floor support-turned-resistance at 0.7492 exposes the 50% Fibonacci retracement at 0.7532. Alternatively, a move below the 23.6% Fib at 0.7344 clears the way for a test of the 14.6% retracement at 0.7280.

Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com